JPMorgan beats earnings expectations after accounting for $2.4 billion hit from tax reform
https://bcorpus.blogspot.com/2018/01/jpmorgan-beats-earnings-expectations-24.html
JPMorgan Chase released the results from its fourth quarter Friday, beating analyst earnings expectations on an adjusted basis with $1.76 a share.
Wall Street analysts had been expecting $1.69 a share.
"2017 was a record year on many measures for JPMorgan Chase as we added clients and customers and delivered record EPS," CEO Jamie Dimon said in a statement. "We had healthy growth in Treasury Services, Securities Services and Investment Banking — we were #1 in IB fees globally, a record for the firm. Commercial Banking and Asset & Wealth Management generated record revenue and net income."
JPMorgan is the first of the big banks to report in what is expected to be an unconventional earnings cycle for the industry, mostly on account of the late-arriving tax law that has caused many banks to book losses on deferred tax assets that declined in value.
Indeed, accounting for that and other special items, JPMorgan posted earnings of $1.07 a share. The bank took a $2.4 billion hit from the new law, equivalent to $0.69 a share, higher than the $2 billion analysts had been expecting.
Nonetheless, Dimon praised the law, which should prove profitable for the bank in the long term:
"The enactment of tax reform in the fourth quarter is a significant positive outcome for the country. U.S. companies will be more competitive globally, which will ultimately benefit all Americans. The cumulative effect of retained and reinvested capital in the U.S. will help grow the economy, ultimately growing jobs and wages. We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments."
Here are the rest of the highlights:
Fourth-quarter net revenue of $25.5 billion.
Net income of $6.7 billion, after adjustments for the tax law and other special items.
Average core loans up 6% year-over-year and 2% quarter-over-quarter.
Net interest income was $13.4 billion, up 11% thanks to rising interest rates and improving loan and deposit growth.
Corporate and investment banking took a hit, with revenue falling 12% to $7.5 billion and net income dropping 32% to $2.3 billion.
In trading, fixed-income revenue dropped 27%, not including impacts from the tax law.
Equity trading was stable, apart from a mark-to-market loss of $143 million on a margin loan to a client. The company later identified that client as Steinhoff International, the South African retailer embroiled in an accounting scandal.
Despite the tax hit on repatriation, JPMorgan says most of its foreign cash is not coming back to US soil, thanks to capital and liquidity requirements in foreign entities.
More on tax impacts
The tax law cost the bank $2.45 billion in the fourth quarter. That comes from a $3.7 billion one-time hit for repatriated earnings, an $800 million hit from the revaluation of foreign tax investments, and a $2.1 billion gain on revaluing deferred tax losses.
Though the law sought to encourage corporations to bring foreign profits back to US soil, JPMorgan says no significant amount of cash is coming back to the US (emphasis ours): "No significant remittance of cash expected — we have capital and liquidity requirements in foreign entities — it is a deemed repatriation."
The bank expects the law to stimulate the economy and its own business. JPMorgan anticipates a boost to investment-banking revenue as well as to corporate lending.
http://www.businessinsider.com/jp-morgan-fourth-quarter-earnings-q4-2018-1
Money in the bank: Booming consumer business pushes JPMorgan past Street forecasts
Double-digit growth in deposits and record credit card sales helped push JPMorgan Chase's quarterly earnings well past analysts' expectations.
The company on Friday reported fourth-quarter earnings of $1.71 per share on revenue of $24.333 billion. Its stock price edged higher in premarket trading.
Analysts expected JPMorgan Chase to report a profit of $1.44 per share on revenue of $23.949 billion, according to a consensus estimate from Thomson Reuters.
The stock has been near 52-week highs since mid-December. Fridays' report marks the bank's first results since the Federal Reserve raised its key interest rate target in a year. The Fed is expected to raise them again three times this year.
JPMorgan Chairman and CEO Jamie Dimon said as the U.S. economy builds momentum, there is opportunity for "good, rational and thoughtful policy decisions to be implemented."
"Our results this quarter were a strong end to another record year, reflecting our intense client focus and solid performance across our businesses," Dimon said in a release.
"In the Consumer business, we had double digit growth in deposits and core loan balances, our credit card sales volume was a record, and for the year we had over $1 trillion of merchant processing volume," he said.
Bank stocks have rallied in recent months on expectations that President-elect Donald Trump will eliminate regulations put in place after the 2008 financial crisis.
JPMorgan's return on tangible common equity, a key performance measure, was 12.2 percent in the latest quarter. The bank's full year net income came in at $24.7 billion, or $6.19 per share.
The bank also said it returned $3.8 billion to shareholders in the fourth quarter.
Total noninterest expenses fell 3 percent to $13.83 billion, primarily driven by lower legal expenses.
Last year, JPMorgan surpassed Wells Fargo to become the world's most valuable bank by market capitalization. That change came as JPMorgan rose slightly and Wells suffered the fallout of a phony customer account scandal.
On Friday, Wells Fargo posted fourth-quarter earnings that missed on the top and bottom lines, sending shares lower nearly 1 percent in premarket trading.
—Reuters contributed to this report.
https://www.cnbc.com/2017/01/13/jpmorgan-chase-reports-fourth-quarter-earnings-on-friday.html
JPMorgan (JPM) Beats on Q4 Earnings Excluding Tax Impact
January 12, 2018
Have you been eager to see how JPMorgan Chase & Co. (JPM - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based major global bank’s earnings release this morning:
An Earnings Beat
JPMorgan came out with earnings of $1.76 per share, which beat the Zacks Consensus Estimate of $1.69. Earnings in the reported quarter exclude $2.4 billion or 69 cents per share charge related to the impact of the tax act.
Improved revenues primarily drove earnings beat.
https://www.zacks.com/stock/news/288641/jpmorgan-jpm-beats-on-q4-earnings-excluding-tax-impact
JPMorgan Chase & Co. Q4 2017 Earnings Beat Estimates
PMorgan Chase Q4 2017 earnings
On a net basis, JPMorgan ChaseQ4 2017 earnings came in at $1.07 per share. The bank’s net interest income rose 11% year over year to $13.4 billion, beating the consensus of $13.2 billion as rising interest rates and growth in loans and deposit drove the increase. A slight decline in markets net interest income partially offset the increase.
JPMorgan’s credit loss provision grew to $1.3 billion while analysts had been expecting $1.47 billion. Corporate and investment banking revenue fell from $8.46 billion in the year-ago quarter to $7.48 billion in the fourth quarter of 2017. Consensus was at $7.91 billion. Assets under management in the firm’s asset and wealth management division reached a new record of $2 trillion, a 15% increase.
Equity market revenue was flat year over year, while fixed income markets revenue plunged 34%. Markets and investor services revenue tumbled 22% to $4.4 billion, while consumer and business banking revenue grew 16% to $5.6 billion.
JPMorgan Chase takes charge for tax reform
The JPMorgan Chase Q4 2017 earnings results include a net impact of $2.4 billion from the tax reform bill, which slashed the bank’s earnings per share by 69 cents. Chairman and CEO Jamie Dimon said in a statement that he sees wide-reaching benefits from the tax reform bill.
“U.S. companies will be more competitive globally, which will ultimately benefit all Americans,” Dimon said in a statement with the JPMorgan Chase Q4 2017 earnings release. “The cumulative effect of retained and reinvested capital in the U.S. will help grow the economy, ultimately growing jobs and wages. We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments.”
Following the JPMorgan Chase Q4 2017 earnings release, the firm’s stock was little changed in premarket trades.
http://www.valuewalk.com/2018/01/jpmorgan-chase-co-q4-2017-earnings-beat-estimates/
https://bcorpus.blogspot.com/2018/01/jpmorgan-beats-earnings-expectations-24.html
JPMorgan Chase released the results from its fourth quarter Friday, beating analyst earnings expectations on an adjusted basis with $1.76 a share.
Wall Street analysts had been expecting $1.69 a share.
"2017 was a record year on many measures for JPMorgan Chase as we added clients and customers and delivered record EPS," CEO Jamie Dimon said in a statement. "We had healthy growth in Treasury Services, Securities Services and Investment Banking — we were #1 in IB fees globally, a record for the firm. Commercial Banking and Asset & Wealth Management generated record revenue and net income."
JPMorgan is the first of the big banks to report in what is expected to be an unconventional earnings cycle for the industry, mostly on account of the late-arriving tax law that has caused many banks to book losses on deferred tax assets that declined in value.
Indeed, accounting for that and other special items, JPMorgan posted earnings of $1.07 a share. The bank took a $2.4 billion hit from the new law, equivalent to $0.69 a share, higher than the $2 billion analysts had been expecting.
Nonetheless, Dimon praised the law, which should prove profitable for the bank in the long term:
"The enactment of tax reform in the fourth quarter is a significant positive outcome for the country. U.S. companies will be more competitive globally, which will ultimately benefit all Americans. The cumulative effect of retained and reinvested capital in the U.S. will help grow the economy, ultimately growing jobs and wages. We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments."
Here are the rest of the highlights:
Fourth-quarter net revenue of $25.5 billion.
Net income of $6.7 billion, after adjustments for the tax law and other special items.
Average core loans up 6% year-over-year and 2% quarter-over-quarter.
Net interest income was $13.4 billion, up 11% thanks to rising interest rates and improving loan and deposit growth.
Corporate and investment banking took a hit, with revenue falling 12% to $7.5 billion and net income dropping 32% to $2.3 billion.
In trading, fixed-income revenue dropped 27%, not including impacts from the tax law.
Equity trading was stable, apart from a mark-to-market loss of $143 million on a margin loan to a client. The company later identified that client as Steinhoff International, the South African retailer embroiled in an accounting scandal.
Despite the tax hit on repatriation, JPMorgan says most of its foreign cash is not coming back to US soil, thanks to capital and liquidity requirements in foreign entities.
More on tax impacts
The tax law cost the bank $2.45 billion in the fourth quarter. That comes from a $3.7 billion one-time hit for repatriated earnings, an $800 million hit from the revaluation of foreign tax investments, and a $2.1 billion gain on revaluing deferred tax losses.
Though the law sought to encourage corporations to bring foreign profits back to US soil, JPMorgan says no significant amount of cash is coming back to the US (emphasis ours): "No significant remittance of cash expected — we have capital and liquidity requirements in foreign entities — it is a deemed repatriation."
The bank expects the law to stimulate the economy and its own business. JPMorgan anticipates a boost to investment-banking revenue as well as to corporate lending.
http://www.businessinsider.com/jp-morgan-fourth-quarter-earnings-q4-2018-1
Money in the bank: Booming consumer business pushes JPMorgan past Street forecasts
Double-digit growth in deposits and record credit card sales helped push JPMorgan Chase's quarterly earnings well past analysts' expectations.
The company on Friday reported fourth-quarter earnings of $1.71 per share on revenue of $24.333 billion. Its stock price edged higher in premarket trading.
Analysts expected JPMorgan Chase to report a profit of $1.44 per share on revenue of $23.949 billion, according to a consensus estimate from Thomson Reuters.
The stock has been near 52-week highs since mid-December. Fridays' report marks the bank's first results since the Federal Reserve raised its key interest rate target in a year. The Fed is expected to raise them again three times this year.
JPMorgan Chairman and CEO Jamie Dimon said as the U.S. economy builds momentum, there is opportunity for "good, rational and thoughtful policy decisions to be implemented."
"Our results this quarter were a strong end to another record year, reflecting our intense client focus and solid performance across our businesses," Dimon said in a release.
"In the Consumer business, we had double digit growth in deposits and core loan balances, our credit card sales volume was a record, and for the year we had over $1 trillion of merchant processing volume," he said.
Bank stocks have rallied in recent months on expectations that President-elect Donald Trump will eliminate regulations put in place after the 2008 financial crisis.
JPMorgan's return on tangible common equity, a key performance measure, was 12.2 percent in the latest quarter. The bank's full year net income came in at $24.7 billion, or $6.19 per share.
The bank also said it returned $3.8 billion to shareholders in the fourth quarter.
Total noninterest expenses fell 3 percent to $13.83 billion, primarily driven by lower legal expenses.
Last year, JPMorgan surpassed Wells Fargo to become the world's most valuable bank by market capitalization. That change came as JPMorgan rose slightly and Wells suffered the fallout of a phony customer account scandal.
On Friday, Wells Fargo posted fourth-quarter earnings that missed on the top and bottom lines, sending shares lower nearly 1 percent in premarket trading.
—Reuters contributed to this report.
https://www.cnbc.com/2017/01/13/jpmorgan-chase-reports-fourth-quarter-earnings-on-friday.html
JPMorgan (JPM) Beats on Q4 Earnings Excluding Tax Impact
January 12, 2018
Have you been eager to see how JPMorgan Chase & Co. (JPM - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based major global bank’s earnings release this morning:
An Earnings Beat
JPMorgan came out with earnings of $1.76 per share, which beat the Zacks Consensus Estimate of $1.69. Earnings in the reported quarter exclude $2.4 billion or 69 cents per share charge related to the impact of the tax act.
Improved revenues primarily drove earnings beat.
https://www.zacks.com/stock/news/288641/jpmorgan-jpm-beats-on-q4-earnings-excluding-tax-impact
JPMorgan Chase & Co. Q4 2017 Earnings Beat Estimates
PMorgan Chase Q4 2017 earnings
On a net basis, JPMorgan ChaseQ4 2017 earnings came in at $1.07 per share. The bank’s net interest income rose 11% year over year to $13.4 billion, beating the consensus of $13.2 billion as rising interest rates and growth in loans and deposit drove the increase. A slight decline in markets net interest income partially offset the increase.
JPMorgan’s credit loss provision grew to $1.3 billion while analysts had been expecting $1.47 billion. Corporate and investment banking revenue fell from $8.46 billion in the year-ago quarter to $7.48 billion in the fourth quarter of 2017. Consensus was at $7.91 billion. Assets under management in the firm’s asset and wealth management division reached a new record of $2 trillion, a 15% increase.
Equity market revenue was flat year over year, while fixed income markets revenue plunged 34%. Markets and investor services revenue tumbled 22% to $4.4 billion, while consumer and business banking revenue grew 16% to $5.6 billion.
JPMorgan Chase takes charge for tax reform
The JPMorgan Chase Q4 2017 earnings results include a net impact of $2.4 billion from the tax reform bill, which slashed the bank’s earnings per share by 69 cents. Chairman and CEO Jamie Dimon said in a statement that he sees wide-reaching benefits from the tax reform bill.
“U.S. companies will be more competitive globally, which will ultimately benefit all Americans,” Dimon said in a statement with the JPMorgan Chase Q4 2017 earnings release. “The cumulative effect of retained and reinvested capital in the U.S. will help grow the economy, ultimately growing jobs and wages. We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments.”
Following the JPMorgan Chase Q4 2017 earnings release, the firm’s stock was little changed in premarket trades.
http://www.valuewalk.com/2018/01/jpmorgan-chase-co-q4-2017-earnings-beat-estimates/
https://bcorpus.blogspot.com/2018/01/jpmorgan-beats-earnings-expectations-24.html
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